IMPACT OF ETHICAL LEADERSHIP ON ORGANIZATIONAL COMMITMENT AND ORGANIZATIONAL CITIZENSHIP BEHAVIOR WITH MEDIATING ROLE OF INTRINSIC MOTIVATION

Rizwan Qaisar Danish,Muhammad Bilal Ahmad,Muhammad Ali,Ahmad Muneeb Mehta,Hafiz Fawad Ali,Shahid Hafeez

doi:10.32479/irmm.9840

Abstract

Ethical leadership in the field of organizational behavior and management has emerged as a significant area of interest in the recent leadership literature. There are, however, few studies that empirically examine the impact of ethical leadership through mediation processes on organizational engagement and citizenship actions. We have built a conceptual model to check whether ethical leadership effects the Organizational Citizenship Behaviour and commitment of organizational citizenship through the mediation of intrinsic motivation. For data collection, sample size of 340 was determined through item response theory. Data was collected through self-administrated questionnaire from different commercial banks located in geographical premises of Lahore, Pakistan. SPSS and AMOS software were used to carry out the analysis, structural equation modeling technique was applied to test the direct and indirect relationships. The results indicated that ethical leadership has a positive effect on the association of organizational commitment and citizenship behaviour within organizations. In fact, intrinsic motivation mediates between the relationship of ethical leadership and the conduct of organizational citizenship. Nevertheless, results also show that in the banking sector there is no mediating effect of intrinsic motivation between ethical leadership and organizational citizenship behaviour. Limitations have been discussed, as have future guidelines. Keywords : Ethical leadership, Organizational commitment, Organizational citizenship behavior, Intrinsic motivation, Banking sector, Pakistan JEL Classification: M19 DOI: https://doi.org/10.32479/irmm.9840

Highlights

In the current business era, where the competition among business organizations is fierce, the role of human capital has become more essential
One of the primary objectives of the current study was to determine the mediational effect of the intrinsic motivation between the relationship ethical leadership, organizational citizenship behavior and organizational commitment of the employees, in the developing country context, especially in Pakistan
The empirical analysis found that intrinsic motivation mediates the relationship between EL and organizational citizenship behavior (OCB), while it has no indirect effect on the relationship between EL and OC

Summary

Introduction

In the current business era, where the competition among business organizations is fierce, the role of human capital has become more essential. To achieve the competitive advantage and superior performance, organizations need employees with higher level of organizational commitment and citizenship behavior towards organizations. Employees that go beyond their job description, their commitment level is the key to success for the organizations. In the current era ethical scandals i.e., frauds, exploitation, deceptions and corruption are found everywhere whether it is small or big organization, developing country or developed, public sector organization or private. As the developing countries face more challenges in ethical business practices due to weak regulatory infrastructure, low ethics standards can reduce organizational commitment and citizenship behavior among the employees. The role of ethical leaders is very central in the organizations.

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